Baba RamdevAfter promoting Swadeshi to consumers, yoga guru Baba Ramdev is now building a business empire by targeting shopkeepers and the trader community on the Swadeshi plank.

In its ads in print and social media, Patanjali Ayurved is appealing to shopkeepers "to give prominence to Patanjali products on shelves", because it "will help in fulfilling the dream of Mahatma Gandhi to promote Swadeshi".

Usually, companies pay shopkeepers to place their products prominently on shelves. But Patanjali is not paying anything extra. "The country needs Swadeshi products; now we are telling shopkeepers to help in this movement. Ultimately, Swadeshi products should reach the consumer," Patanjali spokesperson SK Tijarawala said.

Rivals and analysts say the strategy may not work in the long run.

"No one can deny them (Patanjali) the Swadeshi plank. But we are Swadeshi too, and we also make in India. Besides, the shopkeepers are looking for returns on investment from their real estate space and pushing products for prominence on shops won't cut ice," Parle products marketing head Mayank Shah said.

Baba Ramdev followed the same strategy with organised retailers such as the Future Group, Reliance Retail and Shoppers' Stop-promoted HypeCity. While Reliance Retail has created 'Patanjali Destinations' at its outlets, the Future Group has a tie-up with Patanjali.

Edelweiss Securities analyst Abneesh Roy said: "Normally, companies pay for prime space on stores. Patanjali is playing the high-volume, low-margin strategy. The Swadeshi angle is likely to help in getting end consumers, but the distribution strategy may not work."

Patanjali, which sells products such as ghee, honey, Chyawanprash, juices, instant noodles and shampoo, has been gaining market share gradually across categories, especially in the ones resonating with Ayurveda such as honey and Chyawanprash.

The latest offensive is targeted at juices makers, with Patanjali's juices claiming to sell more pulp at lesser prices, selling at discounts of about 14-16% in comparison to Dabur's Real and Pepsico's Tropicana.

"We believe Patanjali will gather some initial market share in juices as it has done in honey and Chyawanprash on the back of lower priced products," Edelweiss Securities wrote in a report on March 8.

Leading modern trade has been reporting high consumer traction and double-digit share of Patanjali products for categories such as ghee, honey, Chyawanprash and instant noodles.